Question : DEDUCTIONS IN FUNDS FOR RURAL DEVELOPMENT

(a) whether the Government is aware of the decision taken at 10th meeting of the Performance Review Committee on Rural Development Schemes held in New Delhi recently that the permissible limit of carry-over balance is going to be reduced from 15% to 10%;

(b) if so, the details of other decisions taken therein;

(c) the reaction of the Government thereon;

(d) whether any representations have been received from certain States particularly Rajasthan in this regard; and

(e) if so, the details thereof and the action taken thereon?

MINISTER OF STATE IN THE MINISTRY OF RURAL DEVELOPMENT (SHRI CHANDRA SEKHAR SAHU)

(a) to (c): The Performance Review Committee is one of the tools of the comprehensive monitoring mechanism introduced by the Ministry of Rural Development to monitor the implementation of the various programmes of the Ministry. During the 10th meeting of the Performance Review Committee which was held on 12th and 13th May, 2006 in New Delhi, the decision of the Ministry of Finance regarding the reduction of permissible limit of carry over balances from 15% to 10% of the annual allocation w.e.f. the financial year 2005-06 was conveyed.

(d) & (e): Subsequently, the State of Rajasthan had expressed some difficulties which may arise on account of this decision of reduction of the limit of carry over balances from 15% to 10%. The Ministry of Rural Development had already conveyed these concerns to the Ministry of Finance at various levels and had requested to retain the limit at 15%. However, the Ministry of Finance did not agree to this proposal and the decision of 10% limit on carry over balances has been implemented.